Arciero announces passage of Enhance Consumer Protection Legislation by House

Wednesday

Feb 21, 2018 at 1:33 PM

State Rep. James Arciero, D-Westford, recently announced that the Massachusetts House of Representative has passed legislation to provide added protections and resources for consumers in the event of a data security breach that impacts a credit agency or other business.

Under this legislation, credit freezes, lifts or removals must be provided to consumers without a charge. Credit agencies or businesses must provide one year of free credit monitoring after any breach.

“This consumer protection legislation will go along way to protect the citizens of Massachusetts whenever there is a data breach and their most sensitive financial is put in jeopardy,” said Arciero. “Given the ever increase report of such breaches over the last few years, I think it was critical for us to act and give consumers have more control over their credit protections. This is an issue that impacts every individual, organization and business in the commonwealth.”

The legislation seeks to upgrade the framework for the implementation of a freeze and related communication. Specifically the bill included provisions to:

n Modernizes the current law by allowing consumers to request credit freezes electronically or by telephone.

n In the event of a security breach, mandates credit agencies place a security freeze on a consumer report within one day of an electronic or telephone request, and within three days of receipt of a written request.

n Credit agencies must send confirmation of the security freeze within three days.

n Credit agencies must lift a security freeze within three days of a written request and 15 minutes of an electronic/ phone request.

n When a consumer requests a freeze, national credit reporting agencies must inform consumers of other reporting agencies that may have files on the consumer. They must also inform consumers of appropriate websites, toll-free numbers and mailing addresses that would permit the consumer to place additional freezes.

For the first time in Massachusetts, this legislation establishes specific guidelines for parents and guardians to freeze accounts of children under the age of 16 and incapacitated individuals. The legislation also updates notification guidelines for breached entities and third party affiliates. This is accomplished by those entities that have been breached being required to immediately notify consumers and continue to give them timely update. In addition, the Massachusetts Office of Consumer Affairs and Business Regulation will post notification of the breach within 24 hours of its occurrence. Finally, the Massachusetts Attorney General must provide information online to consumers regarding the breach. This bill also updates current Massachusetts law to require companies and organizations to obtain consent before running a credit report.

“I am hopeful that in this age of advanced technology and computers that we can stay a step ahead of those individuals who can breach security systems and put Massachusetts residents at financial risk. I look forward to this bill becoming law in the not too distant future,” said Arciero.

The bill is currently in the Senate Ways and Means Committee for review.